Vaughn Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at December 31, 2025, and December 31, 2026. This information is presented below. 12/31/25 $362,780 12/31/26 Cost Date 389,950 Net Realizable Value $339,620 370,690 (a) Prepare the journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit

Yaughn Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at December 31, 2025, and December 31:2026. This information is presented below. (a) Prepare the journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (List all debit entries before credit entries. Credit occount titles are cutomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter Ofor the amounts: Record joumal entries in the onder presented in the problem. (b) Prepare journal entries required at December 31,2025 , and December 31,2026 , assuming inventory is recorded at LCNRV and a perpetunl system using the loss method. (tist alf debit entries before credit entrles, Credit account titles ore outomatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem) (c) Which of the two methods above provides the higher net income in each year